Given these pressures, I'd expect some enterprising folks to build an incentive based fee structure in support of long term clients. Something a bit more sophisticated than short term trading fees. Maybe this is done in a different way, but I would think one might want to use an applied load or annual fee based on the time you commit your funds for? It sounds like a situation where there is a lot of value for the portfolio manager in a stable client base, and it might be best to encourage those with a day to day mindset to invest elsewhere? Granted, big inflows mean big dollars, and perhaps even a strong manager with solid results may not attract sufficient funds to keep the business going.... I freely admit to being largely ignorant about the pros and cons.
Given these pressures, I'd expect some enterprising folks to build an incentive based fee structure in support of long term clients. Something a bit more sophisticated than short term trading fees. Maybe this is done in a different way, but I would think one might want to use an applied load or annual fee based on the time you commit your funds for? It sounds like a situation where there is a lot of value for the portfolio manager in a stable client base, and it might be best to encourage those with a day to day mindset to invest elsewhere? Granted, big inflows mean big dollars, and perhaps even a strong manager with solid results may not attract sufficient funds to keep the business going.... I freely admit to being largely ignorant about the pros and cons.